Selling Residential Property in Ireland via Amorys Solicitors

by Deirdre Farrell | Mar 9, 2020 | Residential Property

Selling Residential Property via Amorys Solicitors

What are you paying us to do?

When selling residential property you will be required to work in conjunction with your solicitor at Amorys throughout the conveyancing progress. There is certain information only you can provide and if this is done in a timely fashion this will enable the transaction to move forward smoothly for you as the vendor and for the purchaser.

Prior to drawing up contracts, in addition to information gathered from you, the vendor, your solicitor will need to read the title deeds and prepare various documents to provide to the purchaser’s solicitor so that he/she can provide the purchaser with a full picture of the property they are buying.

The steps of selling residential property are as follows:

If there is a mortgage over the property, you will sign a letter of authority which will be sent to your lender by us in order to take up the title deeds. You will also be furnished with an introductory letter, a comprehensive questionnaire and our Guide to Selling Residential Property which attaches a checklist of the documents/ actions required from you.
Once received, your solicitor will read the title documentation in conjunction with the replies to your questionnaire and the following documents will be drawn up:
- Draft Contract for Sale
- Replies to Requisitions on Title
- Family Home Protection Act Declaration
- Section 72 Declaration
- Declaration re alterations (if any) to your property
- Undertaking to discharge your mortgage – if applicable
- Undertaking to assist with any Land Registry queries which may arise
- Any other declarations or undertakings which may be required by the purchaser’s solicitor
- Tax clearance application (if necessary)
If your property is a managed property, enquiries will need to be made with the management company and Multi-Unit Development (MUDs) Act replies to requisitions obtained. In addition, if you are selling an apartment, your solicitor will need to obtain various additional documents from the management company such as an up to date service charge statement and a letter of indemnity in relation to the block insurance policy, all of which must be handed over to the purchaser’s solicitor well in advance of the closing date.
Your solicitor may also need to obtain a letter from the Local Authority confirming the roads and services abutting your property have been taken in charge and a certified copy Folio and Filed Plan from the Land Registry. There may also be planning issues to be dealt with in relation to any alterations or extensions to the property. Further work arises, if your property is the subject of any type of co-ownership agreement with the local council. If your property is registered in the Registry of Deeds, then your solicitor will need to liaise with an architect to provide an approved map for handing over to the purchaser’s solicitor for the purpose of an application for first registration in the Land Registry.
Your solicitor will regularly liaise with you with regard to obtaining other information from you such as Local Property Tax payment and printout, service charge payment and any other queries which may arise via the purchaser’s solicitor.
Your solicitor will need to obtain regularly updated redemption figures from your lender showing the amount required to discharge the loan over your property. This information will be provided to the purchaser’s solicitor prior to the closing date and will also be required to enable your solicitor to discharge the mortgage in full immediately after the sale has completed.
Prior to contracts being signed and exchanged, the purchaser’s solicitor very often raises pre-contract queries which we will deal on your behalf. This may involve some ‘to-ing and fro-ing’ between solicitors until the purchaser and their solicitor are satisfied with the replies.
The purchaser will then sign the contract in duplicate and his/her solicitor will return same with the balance of the deposit to us.
Prior to the closing date, your solicitor will meet with you for the purpose of signing the closing documents referred to. Your solicitor will also need to prepare an apportionment account in relation to Local Property Tax and service charges (if appropriate).
Just before the transaction completes, all title documents, together with the additional closing documents, will be sent to the purchaser’s solicitor. The balance of the purchase moneys will be received into our client account to be held on trust pending a successful completion.
On the closing date, the purchaser’s solicitor will obtain searches which will be transmitted to us for an explanation (if necessary) and certification.

Post-Completion

Once the sale has closed, we will be required to do the following:
- Discharge all mortgages/loans over the property to your lender
- Provide you with a cash statement showing all required financial transactions
- Follow up with the relevant party and discharge any undertakings given to the purchaser’s solicitor
- Once received, send e-discharge relating to your mortgage to the purchaser’s solicitor
- Follow up with purchaser’s solicitor to release us from undertakings

The selling residential property procedures above are a simplified version of the conveyancing process. A conveyancing transaction requires many hours of work for your solicitor and every sale is different but all conveyancing cases have one thing in common – they all need the care and attention to detail that only comes from instructing an experienced professional. We provide excellent value for money to our clients and are confident that we provide a highly competitive and first-class service.

Red Adair once said .. “If you think it’s expensive to hire a professional to do the job, wait until you hire an amateur”!

Whilst every effort has been made to ensure the accuracy of the information contained in this article, it has been provided for information purposes only and is not intended to constitute legal advice. Amorys Solicitors is a boutique commercial and private client law firm in Sandyford, Dublin 18, Ireland.
For further information and advice in relation to “Selling Residential Property in Ireland”, please contact Deirdre Farrell, partner, Amorys Solicitors deirdre@amoryssolicitors.com, telephone 01 213 5940 or your usual contact at Amorys.

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Reducing Stamp Duty on a Business Asset Sale and Purchase in Ireland

by Deirdre Farrell | Mar 2, 2020 | Commercial Property

Reducing Stamp Duty on a Business Asset Sale and Purchase in Ireland

It is generally understood that a buyer’s stamp duty liability will be 7.5%1 of the market value consideration paid for all assets passing under a Business Asset Sale and Purchase Agreement executed in Ireland2 but this is not necessarily the case. Below are a few mechanisms by which stamp duty on a business asset sale may be reduced.

Any document executed in connection with the sale of intellectual property is exempt from stamp duty3. This is an important provision as it includes trademarks, copyright, patent and know-how and goodwill attaching to same4.
It is possible, in some cases, to avoid stamp duty on the sale of plant and machinery, goods, wares and merchandise5. In order to do so, a buyer will need to agree in the Business Asset Sale and Purchase Agreement for ownership to these items to pass ‘by delivery’ and must not require a formal instrument evidencing the transfer of ownership on closing6.
Similarly, it may be possible to avoid stamp duty on the acquisition of a debt (deemed consideration for stamp duty purposes), if the buyer agreed the debt would transfer ‘on delivery’. This could be effected by the production of a bearer instrument7 to the buyer on completion. Alternatively, the debt may be transferred by a novation agreement which, unlike an assignment8, would not classify the debt as a ‘conveyance on sale’ for stamp duty purposes9.
The transfer of loan capital of a company or body corporate is exempt from stamp duty10 provided certain conditions are met. Broadly, the loan capital must not carry a right of conversion into shares of an Irish company, must not carry rights similar to rights attaching to shares (e.g. voting rights, right to profits etc), must not be issued for a price which is less than 90% of its nominal value and must not carry a right to interest which is related to movements in an index.
Any instrument executed in connection with the sale of foreign property is exempt from stamp duty11. This can be extremely useful in circumstances where the seller is non-resident as movable property (including potentially the seller’s debts) could be deemed to be situated in the Seller’s country of residence, rather than in Ireland.
Instruments executed in connection with the sale of residential property attract stamp duty of 1% of the market value of the consideration paid12. Residential property includes mobile and other holiday homes. This is a useful and valuable provision for buyers looking to acquire a residential property portfolio.
Many instruments relating to the financial services industry such as debt-factoring agreements13, financial futures and contracts for difference are exempt from stamp duty14.

1 Stamp duty on non-residential property is typically charged as a ‘conveyance on sale’ at this rate – see Schedule 1, Stamp Duties Consolidation Act, 1999 (“SDCA ‘99”) as amended by section 57 of the Finance Act 2019.

2 The charge to stamp duty liability arises under s. 2 SDCA ’99 in relation to instruments executed “in Ireland”

3 S.101 Stamp Duties Consolidation Act, 1999 (“SDCA ’99”).

4 Goodwill will be exempt only to the extent that it is directly attributable to the intellectual property in question. Where there is business goodwill and goodwill that is attributable to the intellectual property, the consideration must be apportioned between the two on a just and reasonable basis.

5 See section 31 Stamp Duties Consolidation Act, 1999 which provides that contracts for the sale of these movables are exempt from stamp duty

6 Circumstances of the transaction will dictate if this is advisable. Careful drafting of the relevant clause is required so as not to render the contract stamp-able as a ‘conveyance on sale’ under schedule 1, SDCA ’99.

7 A bearer instrument, or bearer bond, is a type of fixed-income security in which no ownership information is recorded and the security is issued in physical form to the purchaser. The holder is presumed to be the owner, and whoever is in possession of the physical bond is entitled to the coupon payments.

8 An assignment is considered a “conveyance or transfer on sale of any property other than stocks or marketable securities or a policy of insurance of a policy of life insurance” (commonly known as “Conveyance on Sale”) under schedule 1 SDCA ’99.

9 A novation agreement would involve the execution of a tripartite agreement by the original lender, the borrower and the party acquiring the debt. The suitability of this option will depend on the facts of the transaction, for example, it would not normally be an appropriate means of transferring a large portfolio of debts as it would require execution by each individual debtor

10 S.85 SDCA ‘99

11 S.2 SDCA ’99 (charge to stamp duty) and see section 31 of the SDCA which provides for the exemption of contracts for sale of foreign property (as opposed to ‘conveyances’)

12 See schedule 1, SDCA ’99

13 The exemption does not apply if the instruments relate to shares in Irish companies or land or buildings in Ireland s. 90 SDCA ‘99

14 S. 90 SDCA ‘99

An ‘asset sale’ has many advantages over a ‘share sale’ for both the buyer and the seller. For example, a seller may be in a position to crystallise a tax loss to offset a gain and a buyer has the potential to avoid uncrystallised gains in its accounts after completion. Consequently, a purchaser should not summarily dismiss structuring a transaction as an ‘asset sale’ as the tax cost may be less than what it may seem at first instance.

Whilst every effort has been made to ensure the accuracy of the information contained in this article, it has been provided for information purposes only and is not intended to constitute legal advice. Amorys Solicitors is a boutique commercial and private client law firm in Sandyford, Dublin 18, Ireland.
For further information and advice in relation to “Reducing Stamp Duty on a Business Asset Sale and Purchase in Ireland”, please contact Deirdre Farrell, partner, Amorys Solicitors deirdre@amoryssolicitors.com, telephone 01 213 5940 or your usual contact at Amorys.

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Purchasing Residential Property via Amorys Solicitors

by Deirdre Farrell | Feb 27, 2020 | Residential Property

Purchasing Residential Property via Amorys Solicitors

What are you paying us to do?

At Amorys we do our utmost to make this very important event in your life run as smoothly as possible for you. We endeavour to ensure that our clients are fully informed, both before and during the conveyancing process, as to the procedures involved and the pitfalls which may be encountered when purchasing residential property.

Purchasing Residential Property Procedures

The following is a simple guide to the procedures involved and what work will be completed by your solicitor at Amorys:

You will give details of your solicitor to both the auctioneer and your lending institution. The auctioneer will provide your solicitor with a sales advice note.
Your solicitor will write to you with a comprehensive introductory letter, a questionnaire for you to complete and our Amorys Guide to Purchasing Residential Property which provides you with detailed information of the conveyancing process.
If they have not already done so, the vendor’s solicitor will take up the title deeds to the property. A draft contract for sale will be drawn up by the vendor’s solicitor and this, together with the relevant supporting copy title documentation will be sent to your solicitor who will peruse the contract and all of the documents, including replies to Requisitions on Title, and identify any anomalies that may arise.
More often than not, pre-contract enquiries will be raised by your solicitor. These may be straightforward questions which are easily satisfied by the vendor’s solicitor or there may be more complex title problems. They are rarely insurmountable but may be time-consuming to resolve. Some queries may also arise as a result of answers you have provided in your questionnaire so it is very important that this is completed as accurately as possible. For example, you must give us details of any works, such as an extension to the property, which you understand may have been carried out, so that we can ensure that we receive all necessary planning information from the vendor’s solicitor. This forms an important part of the title and will be required by your lending institution.
In some circumstances, the vendor or their solicitor may not be willing to provide information or documents which are considered necessary by your solicitor and there can be a considerable amount of “to-ing and fro-ing” until all is satisfactorily resolved.
Once you and your solicitor are happy with the draft Contract for Sale then it is ready to be signed by you. You will be fully advised by your solicitor as to the legalities of what you are signing. At this time, you will be required to sign the mortgage deed and other documents, all of which will be fully explained to you.
When we have transferred the balance of the deposit (received from you into our client account) to the vendor’s solicitor and the vendor also signs the Contract for Sale, one part is returned to your solicitor and a binding contract is in place.
Your solicitor will continue to liaise with you regarding the progress of the conveyance, any outstanding matters relating to your loan, etc. You will be provided with a cash statement outlining all your financial obligations prior to the closing date.
Approximately ten days prior to the closing date, your solicitor will request drawdown of the loan money from your lending institution which will be paid into our client account. If there is a balance of money required from you, you will be asked to furnish these funds to your solicitor a minimum of five working days prior to completion, together with fees, outlays and stamp duty payable. Your solicitor will also ascertain from the vendor’s solicitor what is required vis-à-vis the apportionment of Local Property Tax and service charges (if applicable). If you are purchasing an apartment, there are a number of additional documents which will need to obtained from the vendor’s solicitor prior to the closing date (such as block insurance indemnity letter, service charge history, etc.).
On the completion date, searches against the property and the vendor will be carried out by your solicitor and any unexplained acts that arise will be certified by the vendor’s solicitor. Once the searches are “clear” and all required title documents are received from the vendor’s solicitor then the balance of the purchase money are transferred/released and the transaction is complete.

Post Completion

Even though you are in possession of your new property, your solicitor’s work is not over and the following will be required post-completion:

Payment of stamp duty online as soon as possible and obtaining a stamp duty certificate;
Following up on any undertakings given by the vendor’s solicitor – such as discharge of the vendor’s mortgage, payment of any outstanding service charges, LPT etc.
If necessary, preparing the documentation required for an application for first registration to the Land Registry;
Preparing all documents to be submitted to the Land Registry for registration;
When registration has been completed, scheduling all title documents and preparing the Certificate of Title for submission to your lending institution.

When all of the above has been completed, your file is ready for archiving. Our firm is obliged by the Law Society to retain your file for up to 12 years. It is the practice of our firm to send files to an off-site storage facility.

The purchasing residential property procedures above are a simplified version of the conveyancing process.
A conveyancing transaction requires many hours of work for your solicitor and every purchase is different but all conveyancing cases have one thing in common – they all need the care and attention to detail that only comes from instructing an experienced professional. We provide excellent value for money to our clients and are confident that we provide a highly competitive and first-class service.

Red Adair once said .. “If you think it’s expensive to hire a professional to do the job, wait until you hire an amateur”!

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Whilst every effort has been made to ensure the accuracy of the information contained in this article, it has been provided for information purposes only and is not intended to constitute legal advice. Amorys Solicitors is a boutique commercial and private client law firm in Sandyford, Dublin 18, Ireland.
For further information and advice in relation to “Purchasing Residential Property via Amorys Solicitors”, please contact Deirdre Farrell, partner, Amorys Solicitors deirdre@amoryssolicitors.com, telephone 01 213 5940 or your usual contact at Amorys.

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On your bike – Cycling and the Law in Ireland

by Deirdre Farrell | Dec 9, 2019 | Personal Injury including Medical Negligence Claims

New legislation has been enacted to protect cyclists from dangerous overtaking by drivers on the road. The Road Traffic (Traffic and Parking) (Amendment) Regulations 2019 came into force on the 12^th of November 2019 and introduces a fixed €120 charge and three penalty points for any driver successfully prosecuted under the legislation. Between 2011 and 2016 a total of 69 cyclists were killed on Irish roads and 4,404 cyclist casualties were reported. Cyclists are extremely vulnerable road users and with the growing popularity of cycling, there are calls to greatly improve the protection of the cyclist on our roads.

Minimum Overtaking Distance:

Safe cycling advocates had been campaigning for the introduction of a minimum passing distance for drivers overtaking a cyclist of 1m for roads with a 50km speed limit and 1.5m for roads with a speed limit higher than 50km. There are a number of countries that have already introduced mandatory passing distances for drivers. Belgium has a mandatory passing distance of 1m. France has a mandatory passing distance of 1m on roads with speed limits of less than 50kmph and 1.5m where the speed limit is more than 50kmph. There are also multiple States in the US that have varying mandatory passing distances e.g. the 3ft law in Baltimore. A number of other countries have an advisory passing distance such as Austria, Chile and New Zealand. Interestingly the Netherlands, where there is a particularly high number of cyclists, has neither an advisory nor a mandatory passing distance as their roads infrastructure deliberately separates cyclists from motorised traffic where possible. They also use ‘cycle streets’ and ‘cycle areas’ where cyclists’ rights are prioritised over those of motorised traffic.

However, the proposal for the introduction of a mandatory passing distance in Ireland was rejected by the Attorney General reportedly due to concerns regarding the enforceability of the legislation and difficulty in measuring the distance for the purpose of prosecuting drivers. A number of recommendations were made by the RSA in their report Examining the International Research Evidence in relation to Minimum Passing Distances for Cyclists (2018), such as increased education and awareness of the advisory passing distances, increased Garda enforcement of existing legislation on unsafe overtaking and infrastructural solutions to segregate cyclists from motorised traffic. The RSA study found ‘limited empirical evidence’ to support the implementation of mandatory passing distances in Ireland.

How Do Cyclists Get Hurt:

The RSA report examined the profile of cyclist injuries and collisions between 2011 and 2015 and found that:

77% of vehicles involved in collisions with cyclists were private cars, 6.2% were taxis and 11% were goods vehicles of which 8.3% were vans.
51% of collisions with cyclists happened at a T junction, 23% at a crossroads and 20% at a roundabout.
85% of collisions occurred in an urban area with 15% in a rural area.
More collisions happened in the brighter months between April to November (8.3% – 11%) than in the months between December and March (6.8% – 5.2%).
Tuesdays and Wednesdays had the highest percentage of collisions (17%) compared to lower levels at the weekend (Saturday 9.5%, Sunday 10.8%).

Between 2014 and 2015:

41% of vehicles were driving forward when a collision occurred with a cyclist, 17% were turning right, 13% were turning left and 2.1% were overtaking.
86% of cyclists were moving forward when a collision occurred and 4.5% were turning right.

Of course, the statistics are only based on the collisions that were reported to the authorities. Many collisions between cyclists and motorists go unreported unless there is a significant injury to the cyclist involved. However, the increased use of cycling helmet cameras and dash cams has been effective in the prosecution of driving that endangers cyclists as video evidence can be produced in court.

Cycling and the Law:

As a cyclist you are entitled to share the road with other road users. The payment of motor tax does not confer ‘ownership’ of the road to motorists. Cyclists, like all other road users, must obey the Rules of the Road. Cyclists are obliged by law to:

keep brakes, lights, tyres etc. in good working order
there must be front and rear brakes and an audible bell on the bike
at night a white/yellow light must be shown at the front of the bike, a red light at the back of the bike (see the Road Traffic (Lighting of Vehicles) Regulations 1963 as amended)
stop at traffic lights, stop signs, yield right of way at yield signs and obey the rules in relation to pedestrian crossings, zebra crossings and pelican crossings

There is no legal obligation to wear a helmet or reflective clothing while cycling however it is obviously common sense to do so. A cycling helmet should always be replaced if it damaged. Cyclists can cycle two abreast when it is safe to do so however you must not cycle in a manner that is likely to create an obstruction for other road users.

Cyclists are not legally obliged to use cycle lanes unless the cycle lane is a contra-flow cycle lane that allows cyclists to go in the opposite direction to the traffic on a one-way street (Road Traffic (Traffic and Parking) Regulations 1997 (as amended by the 2018 Regulations).

The Gardaí have the power since 2015 to stop and fine cyclists for certain fixed charge cycling offences such as failing to stop at red traffic lights, cycling in a pedestrianised street, having no front or rear lights during ‘light-up’ hours or cycling a bike without reasonable consideration. The fine is €40.

It remains to be seen if the new regulations regarding the dangerous overtaking of cyclists will be effective and much will depend on the willingness of the Gardaí to enforce the regulations and prosecute those drivers who put cyclists’ lives at risk. Collisions as a result of dangerous overtaking manoeuvres are a ‘sub-set’ of motorist-cycling collisions in Ireland and internationally as highlighted in the RSA report. More collisions occurred when vehicles were driving forward (41%) as opposed to overtaking (2.1%) between 2014 and 2015.

Cycling reduces congestion on our roads and is an environmentally friendly, efficient and healthy way of commuting. Between 2011 and 2016 the national Census recorded a 34% increase in cycling as a means of getting to and from school, college and work. The success of the Dublin Bike Scheme is a testament to the popularity of the bicycle as an alternative transport solution in a city congested with traffic. The introduction of legislation that aims to specifically protect cyclists is absolutely necessary however as long as cyclists are sharing the road with motorised traffic they will remain vulnerable road users. The reality is that cyclist safety would be much improved if the infrastructure of Irish roads separated cyclists from motorised traffic as in the Netherlands.

Whilst every effort has been made to ensure the accuracy of the information contained in this article, it has been provided for information purposes only and is not intended to constitute legal advice. Amorys Solicitors is a boutique commercial and private client law firm in Sandyford, Dublin 18, Ireland.
For further information and advice in relation to “On your bike – Cycling and the Law in Ireland”, please contact Daragh Burke, partner, Amorys Solicitors daragh@amoryssolicitors.com, telephone 01 213 5940 or your usual contact at Amorys.

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Help to Buy Scheme for First Time Buyers

by Deirdre Farrell | Dec 5, 2019 | Residential Property

First-time buyers will welcome the news that the Help to Buy scheme (the “HTB”) was extended for a further two years to 31 December 2021 in Budget 2020. The Help to Buy Scheme is a tax refund of up to €20,000 which can be used towards the purchase price of a new home with a value of up to €500,000. The HTB had been due to be discontinued at the end of 2019.

How the Help to Buy Scheme Works

The help to buy scheme operates by providing a rebate of up to €20,000 of Income Tax and Deposit Interest Retention Tax (DIRT) paid by the first time buyers in the four years prior the purchase or new build.

The amount that can be claimed is the lesser of €20,000 or 5 % of the purchase price of the property or market value of the new build when completed up to a maximum of €500,000 as follows:

PURCHASE PRICE	MAXIMUM REFUND ON PURCHASE AFTER 31/12/16
€200,000	€10,000
€250,000	€12,500
€300,000	€15,000
€400,000	€20,000
€500,000	€20,000
€501,000	€NIL

The rebate is only available for properties valued at €500,000 or less.

The maximum payment is €20,000 per property and applies regardless of how many people enter into a contract to buy a house. Payment of the rebate is made either directly to the developer (in the case of first time purchased properties) or to a bank account held with a specified qualifying lender in the case of self-built properties.

Retrospective applications are only available in limited situations – see below. Generally in order to qualify for the HTB you must not yet have completed the purchase/ construction of your new home.

Only newly built dwellings (apartments, houses, etc) and self-builds are included in the scheme. Conversions and restorations of old or derelict homes do not qualify, but conversion of a non-domestic building for residential use may qualify.

It is a requirement of the scheme that a loan with a “qualifying lender” of at least 70% of the market value of the property is taken out. Therefore cash purchasers and those with a loan to value ratio of less than 70% are excluded from this scheme.

If the property is a ‘first time purchased’ property, in order to qualify the developer or contractor must be on the Revenue’s list of approved developers and contractors. In the case of self-builds, Revenue approval of the contractor is not required.

Who Can Make a Claim?

To claim the Help to Buy Scheme, you must:

be a first-time buyer;
buy or build a new property between 19 July 2016 and 31 December 2021;
live in the property as your main home for five years after you buy or build it; and
be tax compliant, if you are self-assessed you must also have tax clearance.

Retrospective claims are only granted where a contract for sale was executed between 19 July 2016 and 31 December 2016 (in the case of newly purchased property) or the first part of a qualifying loan was drawn down during that time in the case of self-builds.

To qualify, one must not have previously bought or built a house or apartment, either on his/her own or jointly with any other person. If a claimant is buying or building the new property with other people, they must also be first-time buyers.

The relevant section of the Help to Buy Legislation defines a first-time purchaser “as an individual who, at the time of a claim…… has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling”. Therefore, a person who has acquired property by way of an inheritance qualifies as a ‘first time purchaser’ under the rules of this scheme.

The HTB is not available for properties where the purchase value (as defined in the relevant legislation) is greater than €500,000.

How to Register

First of all, you need to register for the scheme by following this link to the Revenue Online System (ROS). You will need your P60 and your driver’s license number to complete registration and time especially if you have not filed a Form 12 (for PAYE tax payers) or a Form 11 (for self-assessed individuals) for previous years. A Step-by-Step guide on applying and completing form 12s is available here and to self-assessment is here.

If you are tax compliant, your application will be approved and you will be provided with an application number/ an HTB number and a summary of the maximum amount you can claim. You will also be given an access code separately through MyEnquiries. If not, you will not be eligible to apply for the Help to Buy Scheme.

Keep a safe note of both of these codes as you will need to provide them to your lender (in the case of a self-build) and your solicitor (where you are purchasing the property). Your contractor or solicitor will require this information to verify what you have submitted.

How to Make a Claim

After you have registered for the Help to Buy Scheme as set out above, in order to claim the refund you will need to upload the following on to the HTB section of the Revenue Online S ystem (ROS):-

Evidence of your mortgage (this could be the first two pages of your letter of offer);
A copy of the signed contract between you and the vendor OR proof of drawdown of the first tranche of the mortgage if the property is a ‘self-build’;
The contractor (in the case of a ‘new purchase’) or your solicitor (in the case of a ‘self-build’) will then be required to verify the details you submitted through the ROS system before the rebate issues.

Who Receives the Rebate?

In the case of retrospective applications (please see above) the rebate is paid directly to the claimant.

In the case of the first-time purchaser, the rebate is paid to the contractor and considered a reduction of the sale price on the completion of the sale. In the case of self-builds, the rebate will be paid to a bank account held with the particular qualifying lender.

Clawback

The property, when purchased must be occupied by the first time buyer or at least one of them in the case of multiple buyers for a period of five years from the date the property is habitable – otherwise, some or all of the rebate will have to be repaid. The rebate is as follows:-

Leave or sell within 1 year	100% of rebate to be repaid
Ditto 2 years	80%
Ditto 3 years	60%
Ditto 4 years	40%
Ditto 5 years	20%

Summary

The Help to Buy Scheme incentive is an extremely attractive one for First Time Buyers of Residential Property and should be availed of where possible. In view of the many actions required by both purchaser and solicitor and/or contractor prior to the issue of the rebate under the HTB, purchasers are advised to start the registration and claims process as early as possible to avoid delays when buying their new home.

Whilst every effort has been made to ensure the accuracy of the information contained in this article, it has been provided for information purposes only and is not intended to constitute legal advice. Amorys Solicitors is a boutique commercial and private client law firm in Sandyford, Dublin 18, Ireland.
For further information and advice in relation to “Help to Buy Scheme for First Time Buyers”, please contact Deirdre Farrell, partner, Amorys Solicitors deirdre@amoryssolicitors.com, telephone 01 213 5940 or your usual contact at Amorys.

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Selling Residential Property via Amorys Solicitors

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The steps of selling residential property are as follows:

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Reducing Stamp Duty on a Business Asset Sale and Purchase in Ireland

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Purchasing Residential Property via Amorys Solicitors

What are you paying us to do?

Purchasing Residential Property Procedures

Leading Dublin solicitors which provides high quality legal advice

Get Your Guide to Purchasing Residential Property

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Minimum Overtaking Distance:

How Do Cyclists Get Hurt:

Cycling and the Law:

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How the Help to Buy Scheme Works

Who Can Make a Claim?

How to Register

How to Make a Claim

Who Receives the Rebate?

Clawback

Summary

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